Progress Rail sells MOW equipment leasing business

Paceline Equity Partners LLC has acquired Progress Rail Equipment Leasing Corp. (PRELC) from Progress Rail, the companies announced today.

Terms of the transaction were not disclosed. PRELC is a leading lessor of railroad maintenance-of-way (MOW) equipment and services. Progress Rail is a subsidiary of Caterpillar Inc.

"PRELC represents an ideal opportunity for Paceline to invest in an asset-rich operating platform with strong and stable cash flows,” said Paceline Chief Executive Officer Sam Loughlin in a press release. "Nondiscretionary demand stemming from the need to maintain America's railroad infrastructure remains robust and we expect this business to perform well across various economic cycles, particularly during today’s late-stage economic cycle."

Although it is leaving the MOW equipment leasing business, Progress Rail will continue to produce Kershaw MOW and vegetation management equipment, said John Newman, executive vice president of infrastructure for Progress Rail.

"As a leading supplier to the global rail industry, we continuously review our business for overall efficiency and competitiveness. After evaluating our MOW leasing business, we believe it will benefit the company to take these steps to be more efficient in the near term and more competitive long term," Newman said.